Post away. There are those on this site much more qualified to talk about/question/answer the topic of Audits. You're welcome! One Day at a Time is Jean Totten.
Thanks Jean, Time to break out my chops. HH, the CPA Audit Report for fye 12/31/22 is available, all you have to do is ask and it will probably be emailed to you. It will also include the accountant’s note plus a P&L spreadsheet on all of the business units. Have fun reviewing and analyzing same. There is no category for deferred maintenance just like there never was a category for cash carry forward which is not an accounting term. The deferred maintenance was basically hidden from by the previous Bill Cook GM as was the money. I asked the GM several times where the money was as it never appeared on the monthly statements or the annual report. I started referring to this figure as “Brigadoon money” as only appeared when it was required to balance the budget at year end. The cash carry forward amount is located in the cash in bank amount but that will change with the 2024 audit as those funds are on deposit in the Capital Improvement Fund (CIF) which is a restricted fund for Capital improvements not covered by the PIF fund which is for long range improvements. Analyzing relevant financial ratios you will note the RCSC has excellent current asset to current liabilities ratio as well as total debt to net worth. The item that a preponderance of members have difficulty grasping is depreciation specifically with golf. You will note that at the bottom of the column golf appears to show a profit, which is true, but when depreciation is deducted golf shows a loss. Depreciation is basically a tax deduction, similar to your personal return when you itemize, that represents a cumulative amount of wear and tear on equipment that has already been purchased over its useful life as per accounting guidelines. I have argued with Bill over this the past few years as well as relying on form 990 filed with the Feds. Which brings us to accountants notes. The purpose of the notes is to explain what type of statement it is, i.e., compilation, review, qualified audit or unqualified audit. The first listed is crap and the last listed is the best. The notes also explain what you are looking at by going in depth on important figures. I have had for years issues with the notes or lack thereof plus a couple of relevant exhibits that should be there. The Budget &Finance committee will be meeting with accountants to discus the statement and what we would like to see added to present a more complete picture of our finances. Of course that is number 683 on the list of things we want completed by the end of the year. I am not sure how many back statements are available and my collection only goes back to I believe 2018. That is a quick thumbnail of the financial statement and if you have questions, post them here and I will try to answer in a timely fashion. Have fun storming the castle.
